PPL Shipyard Secures Another Rig Building Contract Worth US$129 Million
PPL Shipyard, a subsidiary of SembCorp Marine has secured a US$129 million contract for the construction of a Baker Marine Pacific Class 375 Deep Drilling Offshore jack-up rig for Seatankers Management Co. Ltd.
Construction of the jack-up rig will take 31 months with work commencing in the second quarter of 2005 and delivery scheduled in the fourth quarter of 2007.
The Baker Marine Pacific Class (“BMC Pacific”) 375 Deep Drilling Offshore Jack-Up Rig is a proprietary designed owned by Baker Marine Pte Ltd, a wholly owned subsidiary of PPL Shipyard. The jack-up rig will be equipped with a drilling package that will enable it to drill high pressure and high temperature wells at 30,000 feet whilst operating in 375 feet of water. It has accommodation for 120 men.
Mr Ong Tian Khiam, Managing Director of PPL Shipyard said “We are pleased to construct a BMC Pacific 375 Deep Drilling Offshore Jack-Up Rig for Seatankers Management Co. Ltd. This is the seventh jack-up rig on order.”
“With the robust offshore oil and gas market and the high utilisation rates for jack-ups, we can expect more rigs to be ordered.”
PPL Shipyard is a rig-building yard with proven track record in the building and servicing of jack-up and semi-submersible rigs. To-date PPL Shipyard has built 26 jack-ups and 4 semi-submersibles, including two deepwater jack-up drilling rigs for Global SantaFe International.
Seatankers Management Co Ltd, a company based in the Republic of Cyprus, currently owns five units of the offshore rig fleet. The company is also overall responsible for the management, control and co-ordination of the Greenwich Holdings Group.
Total order book as at December 31, 2004 stood at S$2.3 billion. Total contracts secured for 2005 to-date stands at S$ 1.2 billion.
Barring unforeseen circumstances, SembCorp Marine expects a positive contribution to its earnings from the contract. However, this contract is not expected to have any material impact on the net tangible assets and earnings per share of SembCorp Marine for the year ending December 31, 2005.
Revenue from the contract will be recognised according to SembCorp Marine’s revenue recognition policy based on the percentage of completion method measured by reference to the value of work performed relative to the total contract value over the duration of the contract.
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